The Journal Entry to Record the Sale of an Available-For-Sale

question 17

Multiple Choice

The journal entry to record the sale of an available-for-sale investment includes a gain on sale of investment of $500. The income statement will reflect:

• A) an increase in net sales of $500.
• B) another income of $500.
• C) an extraordinary gain of $500.
• D) nothing, since the entry impacts only asset accounts.

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Definitions:

Hotlines

Designated phone lines or digital platforms provided for reporting emergencies, complaints, or issues, often related to safety, ethics, or customer service.

Critical Comments

Analytical or evaluative remarks focusing on potential flaws or weaknesses.

Ethical Corporate Culture

A work environment where ethical practices, values, and behaviors are promoted and integrated into all aspects of the business.

Character Education

Educational programs and initiatives aimed at developing ethical, responsible, and caring individuals by teaching them values and morals.